Page 129 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

E-Commerce and E-Business

10.2.2 Commonly Used Laws

E-Commerce companies will have to meet the terms with a wide range of laws. E-Commerce owners
and workers should be aware of some of the commonly used laws for advertising, children, copyright,
trademarks and zoning.
Advertising

Web sites advertise their goods or services to their customers. The traditional laws of advertising that
apply to ordinary sales are enacted in the interest of the consumers to avoid deceptive and unfair acts or
practices. The laws are also applicable to the advertising or marketing on the Internet. The Web site will
be liable if it creates confusion or misrepresents the features, quality, or geographic origin of the goods
or services which are offered for sale in the advertisement. In addition to the advertising laws,
depending on the kind of business, the Web sites will have to comply with the laws applicable to
business. Some countries have introduced legislations that will place limitations on the Internet
advertising. In such cases, Web site owners will be subjected to liability for violation of the laws of a
country even though they were unaware of such limitations or restrictions on advertisements. Further,
advertisement or banners may be exposed to liabilities under the consumer protection laws since the
consumer in different jurisdictions might subject it to different interpretations.
Children
Children’s Online Privacy Protection Act applies to any operator of commercial Web site, which directs
services to children under the age of 13 and collects personal information from them. Such sites will
have to post a privacy policy on their homepage and links to other pages where the information will be
collected. Such sites should allow parents the choice to give consent or refuse the use of the child’s
personal information.

Browse for some of the Web sites, which ask for parent’s consent before taking up any
child’s information.

Copyrights
E-Commerce involves selling goods or services through the Web sites. Since, these Web sites have
written words and materials, they can be subject to copyright laws. Copyright protection is given
immediately to any original work of authorship. Anyone using the creation contrary to the writer’s
wish will face legal consequences.

An online company cannot use the name or logo of another company to do their
business.
Trademarks

Similar to copyright protections, trademark rights give the owner an exclusive use of any distinctive
name, sign, logo, or any similar combination, which recognizes the company or product. Using the
trademarked name or property on a Web site, without getting the consent of the owner will result in
serious legal actions.
Zoning
Every state and local municipal organization will set its laws and regulations pertaining to zoning.
Zoning laws generally restrict or govern how the land can be used. The laws can change widely from
state to state and from city to city, but generally restricts or categorizes land use in one of the five
categories like residential, commercial, industrial, agricultural, or rural. E-Commerce may be subject to
zoning laws depending on the size and extent of the business.

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